# Non-Tradable Channel: Demographics → Health Spending → REER

| Model | Dep Var | N | Countries | R² |
|---|---|---|---|---|
| C1: Z → health_exp_gdp | health_exp_gdp | 4,366 | 185 | 0.268 |
| C2: health_exp → log REER | log_reer_combined | 2,332 | 98 | 0.009 |
| C3: Z → REER | health_exp | log_reer_combined | 2,332 | 98 | -0.013 |

## Key Coefficients

| Model | Variable | Coef | SE | p-value | Sig |
|---|---|---|---|---|---|
| C1: Z → health_exp_gdp | Z_1 | -0.6501 | 2.3905 | 0.7857 |  |
| C1: Z → health_exp_gdp | Z_2 | 0.4350 | 0.3476 | 0.2108 |  |
| C1: Z → health_exp_gdp | Z_3 | -0.0230 | 0.0141 | 0.1024 |  |
| C2: health_exp → log REER | health_exp_gdp | -0.0022 | 0.0034 | 0.5269 |  |
| C3: Z → REER | health_exp | Z_1 | -1.4941 | 0.3819 | 0.0001 | *** |
| C3: Z → REER | health_exp | Z_2 | 0.2029 | 0.0546 | 0.0002 | *** |
| C3: Z → REER | health_exp | Z_3 | -0.0077 | 0.0022 | 0.0003 | *** |
| C3: Z → REER | health_exp | health_exp_gdp | 0.0000 | 0.0036 | 0.9918 |  |

*Non-tradable demand channel: aging → health spending → REER appreciation*